Tobacco Industry Analysis
The tobacco industry involves companies that sell and produce tobacco products all around the world. Tobacco products include cigarette, cigar, pipe, and chewing tobacco. Tobacco smoking is “the single largest cause of preventable death and disease in our community.” (Tobacco. 2006) With a society becoming more prosperous, education is improving and a concern for quality of life is resulting in a strong anti-smoking sentiment on all levels of society. Therefore the present and future marketing activities of the tobacco industry are heavily impacted by forces within its micro and macro environments.
In analysing the changing marketing environment for the Tobacco industry, we look at the micro and macro-environments impacting on this industry.
The micro-environment consists of the forces close to the organisation that affect the customers; the organisation, suppliers, intermediaries, customers, competitors, and the public. The macro-environment involves the societal forces that impact on the micro-environment; demographic, economic, natural, technological, political, and cultural.
Macro-Environment
Demographic
Smoking rates vary over the different socio-economic levels in society. Education levels show trends in smoking rates with people having obtained higher education levels being less likely to smoke than others with a lesser education. Current smoking rates reflect that smoking is more prevalent in blue collar workers than in white collar. (Tobacco in Australia: Facts and Issues. 1998.) Our population is becoming more educated and the rising numbers of educated people pose a threat to the present and future marketing activities of the tobacco industry. (Fig. 1)
Present statistics show that “Rates of current smoking were highest in young adults. In males, prevalence of current smoking peaked at 34.7% in the 25-34 years age group…… In females, the highest rate of current smoking (27.4%) was reported in the 16-24 years age group.”(Smoking prevalence
In analysing the changing marketing environment for the Tobacco industry, we look at the micro and macro-environments impacting on this industry.
The micro-environment consists of the forces close to the organisation that affect the customers; the organisation, suppliers, intermediaries, customers, competitors, and the public. The macro-environment involves the societal forces that impact on the micro-environment; demographic, economic, natural, technological, political, and cultural.
Macro-Environment
Demographic
Smoking rates vary over the different socio-economic levels in society. Education levels show trends in smoking rates with people having obtained higher education levels being less likely to smoke than others with a lesser education. Current smoking rates reflect that smoking is more prevalent in blue collar workers than in white collar. (Tobacco in Australia: Facts and Issues. 1998.) Our population is becoming more educated and the rising numbers of educated people pose a threat to the present and future marketing activities of the tobacco industry. (Fig. 1)
Present statistics show that “Rates of current smoking were highest in young adults. In males, prevalence of current smoking peaked at 34.7% in the 25-34 years age group…… In females, the highest rate of current smoking (27.4%) was reported in the 16-24 years age group.”(Smoking prevalence
References: Kotler, P.,S. Adam, L. Brown, G. Armstrong. 2006. Principals of Marketing. NSW: Pearson Education Australia. Tobacco Industry. 2007. http://en.wikipedia.org/wiki/Tobacco_industry (accessed August 29, 2007) Cigarette consumption and the sales of nicotine replacement products. 2000. http://tobaccocontrol.bmj.com/cgi/reprint/9/suppl_2/ii60.pdf (accessed August 30, 2007) Smoking prevalence in NSW in 2002 – NSW Health Survey. 2006. http://www.health.nsw.gov.au/public-health/health-promotion/tobacco/facts/index.html (accessed August 29, 2007) Tobacco in Australia: Facts and Issues Tobacco advertising and promotion. 2005. http://www.quit.org.au/article.asp?ContentID=7161 (accessed August 29, 2007) Tobacco (accessed August 30, 2007) Screening out Smoking (accessed August 30, 2007) Effects of cigarette tax increase on cigarette consumption in Taiwan (accessed August 31, 2007)